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tv   After the Bell  FOX Business  January 9, 2015 4:00pm-5:01pm EST

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sector -- >> and underperforming this year too. david: yeah. all right. there are the bells. looks like we're going to -- we're off of the lows of of the session, that's the best we can say. liz: indeed. "after the bell" starts right now. ♪ ♪ liz: a brutal ending for . liz: a brutal ending for two deadly hostage situations in paris today.. david: a female gun wielding accomplice is on the run. james, i got to ask you first of all about what might happen? because of course, we're all on tenterhooks whether something else is going to come down over there, we have the one terrorist apparently on the loose.
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mi 5, the cia/fbi of england, their chief is talking out of school, which he doesn't about an imminent threat. is he just referring to what might be happening in england or could that happen here as well? >> well, i think, look, it can happen anywhere any time. that's the one thing we know for sure and look like anything. people are shocked. they're using guns, this is unprecedented, completely not unprecedented. we've seen everything and you should expect all this stuff. europe's got the bigger problem, the majority of folks that have gone through the terrorist pipelines into yemen and syria, iraq, are from europe, back to europe. we've seen this activity in europe, so i think europe's probably really sitting with eyes wide open, but you can't put this off the thing. we keep track of this at heritage, there have been at least by our count, 60+ islamist terrorist plots on the united states, the vast
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majority foiled since 9/11. we shouldn't be surprised when they happen. liz: some a couple blocks from times square when people try to pull things off. the question is what do we do with home grown terrorist cells where people never stepped off u.s. soil, they are raised here and simply like the horror that is coming from this sect of people? >> there is a three-part answer. one is good intelligence, good information sharing, going out and finding terrorist plots, very small before they act. that's the most effective and best and cost effective terrorist countermeasure, period, better than walls and guards and guns and everything else. the second thing is you got to focus on the terrorist pipelines, they funnel people and money, it's a propaganda thing, inspires people, it puts people in and out of country, working on shutting these things down is a big deal, and the third, and it's part of this, crushing al qaeda and isis, showing that these are
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causes that are not winning causes. they are not things to emulate, not things to proud of. that's important. winning in places like iraq and yemen, that's part of fighting the war here at home as well. david: james, you know, nothing is worse for business than uncertainty. that's the one thing that business folks can't deal with, because you can't plan. if you saw what happened to the market today, the market was way down, it changed. it ended down but it came back significantly when there seemed to be a sense of resolution, when the terrorists were killed, the hostage were released or tragically killed themselves. what's going to happen to the terrorist cells affiliate with the one that carried out this. are they going to hunker down and go silent or do you think they're going to do something else? >> good question, i simply don't know the answer to that. one of the things that happens after a terrorist attack everybody does blink, what do they been me? are they going to look at me?
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there is a cooling effect. some of the guys are not stupid and like to do a bunch of the things because it enhances the fear and everything else. david: that's in fact what happened over the past 48-72 hours, one attack on top of another. >> yes, here's what i would tell the market. be prepared on a quiet afternoon when nothing else is going on that somewhere in the world there is going to be a terrorist attack. liz: listen, it's frightening but hopefully we have the right people on it. who does it the best? which country? which organization fights these terrorists in the best way? >> i think we're all doing a better job than we were on 9/11. we do a lot of stupid stuff in the united states and elsewhere around the world. on the bloc of tackling and trying to track down terrorists, u.s., new zealand, france, great britain, germany, we all take this very, very seriously and work this 24-7,
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365. that is when i get annoyed about things about the distraction of dhs and work on amnesty and other stuff. distracting people from the day job. people at the fbi, the dhs know what they should be doing 24-7, 365 working this problem, you can never rest. that's what works best. let the professionals do their job. david: james, thank you very much, james. good to see you. >> thanks. liz: reaction from the markets. all the news today. we have zack shepard, scott brown, john trainer and mark sebastian at the cme, mark, we kick it off with you, looking at the headlines, around 10:45 to 11:15 eastern french police moved in simultaneously to the two hostage situations and shut that down basically. what was that like on the floor today? >> well, you know, it was looking like the rails were going to fall off of the s&p,
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and give away a big piece of yesterday's gains, yesterday was a little too strong, a little overreaction, that's why we saw the sell-off today. but once they caught these guys and took them down, the market stopped selling off, and stabilized. the market held a relatively tight range for the rest of the day and turned into really just churning after all the events came down. david: scott brown, talk about the jobs numbers, the market was up in the futures trading until the jobs numbers came down, and then there was a lot -- the terrorist effect. talk about the jobs numbers and that effect on the market. we saw the weak wage growth, of course, that is a concern despite the good numbers overall, will the weak wage growth affect the growth in companies and therefore the stock market? >> not necessarily, i think the weak trend we're seeing in wages really suggests there's still a lot of labor market
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slack that suggests the fed can be patient in deciding when to raise short-term interest rates. we have the drop in gasoline prices which is going provide a lot of support for consumer spending in the first half of 2015. liz: john trainer, we're in the first, finishing out the first full week of january trade. what worked last year? will that work again this year? i'm wondering what you see as an evergreen for the next year and what people should stay away from? >> excellent question, and the theme. conversation with clients we see a real divergence that the theme in 2015 is going to be that divergence between the u.s. and europe. we're going to see different policies. the two regions take different courses, and thensa the prior speaker said, the divergence you're going to see in the oil market. not only the divergence between countries, the oil producers and consumers, but here in the
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u.s., when you take a look at individual companies, who are the beneficiaries and who are the ones who are going to suffer. it's a theme of divergence we're stressing with clients this year. david: zack shepard, folks are looking for a correction, every time they see the market go down, they think this is a correction maybe i can go in on or debate and wait a little longer. you just don't like the word correction at all. why not? >> markets don't correct, they react efficiently to new information. they're incredible information processing machines, and you know, when things like that happen, if you have a little dip in the market, we actually look at it as an opportunity. it's a massive opportunity to rebalance the portfolio. you can see what's low. it's hard for people to do. nobody ever wants to do it because it causes so much pain to buy what's low, you need to be a prudent investor
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long-term. liz: mark sebastian, volatility index closing below 18, what are you learning from this? did you see a lot of traders saying maybe we need to do s&p puts to protect ourselves? >> yeah, there's no reason. after the two day rally we just had, i have a lot of problems seeing a great reason to go long over the weekend. that's why you see this. today was the least volatile day of the week and we were down 17 handles. we've seen a new regime in volatility. i think we're seeing the vix slowly ramp itself up, gone are the days we see the vix of 11 or 12 and traders should look at 15 as the low end, and 20 more toward high end and elevated. vix itself is in a new trading range. another thing i think is interesting is the oil vix, oiv. i'm going to say we're within a couple of bucks of the bottom in oil. and i'll tell you why, oiv, the
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oil vix is starting to fall with oil prices. we saw something similar like that at the end of the 08 crash in march of 2009 with equities and seeing a similar pattern develop. we're within a couple of bucks of a bottom. david: let me get john in on oil. the way it affects all stocks including of course retail is significant. how can investors bet on the oil effect with so much uncertainty in the oil market? >> we have made a couple of big decisions in our portfolios. number one, we're slightly underweight energy, and the energy stocks we owner the large integrateds. david: like shell, exxon mobil, et cetera? >> precisely, precisely. we decided this is too early to do bottom fishing. more bad news on the earnings front from the energy stocks. with regard to the retailers,
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we've seen, that good numbers out of walmart and costco for december. i think the retailers are going to be major beneficiaries going forward, especially the more value oriented retailers which are the ones we like the most right now. liz: good to see all of you, zack shepard, scott brown, mark treynor and mark sebastian. david: heading live to paris where peaceful vigils are planned for the weekend to remember those who lost their lives in the terrorist attacks and to stand in solidarity against these terror attacks. liz: the arc de triomphe. european stocks ending sharply as a result of the hostage situation in france. should investors stay away or bargains right now? we've got a panel to debate that. david: a jobs report, they look great on the overall, but dig deeper and a different story there. we're going to get the real scoop on the ground from members of the jobs creators
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network, coming up. liz: and, oh, boy, fox business is all atwitter. mark messier, one of the greatest hockey players in nhl history live in new york, he's back in the studio to talk about the second annual rivalry on ice, harvard versus yale! n, but i'm a bit skeptical of sure things. why's that? look what daddy's got... ahhhhhhhhhh!!!!! growth you can count on from the bank where no branches equals great rates. and i quit smoking iwith chantix. i told myself for so long that i needed to quit smoking. i would quit then i'd go right back to it. chantix absolutely helped me quit smoking. along with support, chantix (varenicline) is proven to help people quit smoking. chantix helped reduce my urge to smoke. some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. some people had seizures while taking chantix.
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. liz: a massive nationwide manhunt under way. we should call it a woman hunt because it is a female terrorist still at large in connection with the two deadly hostage incidents earlier today. david: joining us live from paris is simon owen, fox news radio reporter. simon, any sign at all of this woman, and talk about the fears the parisians have about what might happen next? >> reporter: hi, well not as we're aware of this, no sightings of her as far as we can tell. been about four or five hours since the two sieges came to an end. there are mixed reports who this woman is. we think she's a young woman, possibly in a relationship with a gunman who took hostages at a kosher market here in paris earlier. and one way or another, she
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apparently seemed to leave before the police went in, before the siege came to a head, and then take off. we've had the two very dramatic sieges come into bloody ends in the last few hours, but ultimately, there is a woman who could be very dangerous who is still at large. liz: we have concurrently, what are expected to be peaceful vigils. if you talk about the most famous monuments, the eiffel tower and the arc de triomphe, of course, the symbol very much of france. they have beamed in lights on the arc de triomphe je suis charlie, named after "charlie hebdo," the attack on the satirical magazine, what do they expect the crowds to be like for the vigil? >> reporter: they had impromptu vigils, people turned out and
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gathered in the thousands not just in paris but around the country. i think this is the difference of some of the other domestic attacks we've seen recently which seem fairly random. this is seen as an assault on values, on the idea of free speech because it was so targeted against the newspaper that has, you know, whatever you say made a name for itself, outraging parts of the muslim world in recent years, as you go around paris, you see the phrase je suis charlie on quite a lot of advertising boards. not sure who brought the ad up, you can't miss it as you walk around, and that solidarity with this publication that you know, it's recently well known here, but it's fairly a cult state kind of thing, the usual print is 60,000 copies each week and they say they're going
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to publish next week as normal, but they're going to publish one million copies. and i don't doubt they'll shift every one of them. this is not a widely read publication even though name is widely known. david: simon, appreciate it. >> thanks. >> mixed picture for jobs, overall numbers growing, but wages are falling and so are the quality of jobs as full-time jobs are replaced by part-timeers. what is the real jobs picture look like on the ground? let's ask people with skin in the game. joining us are members of the jobs creators network. doug haugh, carlos gazejia and good to see you. thank you for coming. carlos, to you first and talk about job growth which looked good overall not only for 2014 but for the first month of this
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year. it's looking pretty good and we have declining wage growth and labor participation going down again. we have quality of job issues, how does the overall job picture look to you? >> the overall picture looks at the fourth quarter basically an economic stimulus package when energy prices were reduced for the american consumer. as energy prices went down, discretionary income went up and they were able to spend. the question is can that continue in 2015. david: well, we don't know what the oil market is going to be doing. steven, what we know is the quality of job seems to have come down, full-time jobs replaced by part-time jobs. lot of people who lost their job months or years ago getting rehired but in a job they don't like as much or doesn't pay as well. >> that's right, we see that. one of the biggest concerns i have right now is what the national labor relations board is doing with franchising and
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recent ruling taking a franchisor and making them liable for the actions of local franchisee. david: this is obviously something person to you. >> very personal. a cost of a lawsuit of a local franchisee can be spread out. as a franchise owner, that's a serious threat to the business. the national labor relations board and possibly the federal government doesn't want to talk about regarding this ruling is how it disproportionatly hurts minority and female owned businesses. remember minorities own 20% of franchises in this country. david: let's broaden that, that is a particular issue of concern particularly to people with franchises. doug, what about overall, the issue of regulations, whether or not this is a more or less business friendly environment than it used to be. which direction do you think we're going? more or less business friendly? >> we hope with the changes in the house and senate we're
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headed towards a positive environment. in the energy industry we're hopeful that we can finally move forward with some new energy strategy and regulations that will allow us to continue to bring new resources to bear, and hopefully continue this stimulus package. i think the numbers the other day were in excess of $2 billion a day coming back into the economy with the lower oil prices. i think we're going to see that, create new jobs and new spending at every level. and we just don't want the country to look past fact that didn't happen overnight as a result of the past five to ten years of innovation and applied new technology in our industry. david: it's been a long time coming. it finally, the momentum finally tilted in terms of oversupply, and that's what brought the huge decline in price. carlos, is the drop in the price of oil and gasoline compensating for the drop in
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wages? >> you know, it's going to help for a little bit. when the oil prices go down, people have discretionary income. question is are there extra costs in health care premiums for the average consumer? no one is talking about that? is that going to offset with the oil prices? like doug said, creating economic policies in a commonsense approach to create a long-term vision of oil prices to stay down. give more discretionary income to the american public and they're going to spend, we're going to have a recovery all americans can be proud of. david: stephen, regarding franchise, is that going to prevent you hiring people? >> it won't prevent hiring people. that's what's great about small business owners, we regulate ourselves, we will continue to drive and punish for the betterment of employees, the local economy and local businesses we thrive to provide for. we want to allow that to stop.
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it will make it more difficult. more time consuming and more costly, and hopefully won't affect the wages any more than they've been affected. david: i'm getting a wrap, doug, quickly, are you hiring? >> we are hiring. we've got 42 open positions now, and again, the low energy costs we think can be a stimulus for all, but it's also creating new demand for our industry and to fill the jobs, we need lots of great talent into the business. david: doug, leave it at that. carlos and stephen, good to see you all, have a great weekend. thank you for joining us, liz? >> thanks, dave. liz: investing in oil causing a lot of pain for many vfrtors who keep thinking we've hit the bottom. one of our panelists says that pain could produce profits a bit later. where should you get in now? we'll debate it next. hedge fund managers walk the walk and talk the talk and drive the right cars and make a
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lot of money, are they making you money. hedge funds underperformed for the past five years, are they worth your money? plus hall of fame hockey player mark messier at madison square garden for the annual college rivalry on ice game. he's joining us straight ahead.
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>> is now the time for investors to look elsewhere for is europe's the place to find the best bargains? we bring interest burdens and jason, let me start with you. we definitely want to stress we understand the human toll and a tragedy but as a business network europe has
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been down but not out. where do you see it on the tall ladder of best investments? >> more to the latter of the worst investments. i would not get to excited about europe. yes it is nice to be early but at the same time i still want and need it to see evidence there is a tour and a europe is still throwing billions of dollars that erupt just to bring it back to life it is not that pretty of the picture for me liz: but some say it isn't enough but figure at some point europe is not going away is now the time to get in? >> i agree with the notion it is not going away but i agree with the idea there is
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a lot of paid right now and get out of the timing is right. the manufacturing numbers are bad talking about deflationary and in the biggest areas there is tension on greece but that is not the real problem it is a small part of the roseau. the biggest problem to me is deflationary hurting consumers across the continent al think the time is right, right now. liz: then you put the horrific situation on top of it. i heard somebody say am not going to france right now with violence and anti-semitism people are leaving europe because of the threats and the taxes are too high. does this change what happened with a relatively successful outcome but look at air france and not to mention in the retailer's.
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are they going to get hammered if the consumers don't show up? >> you don't w that risk unless you are truly bottom fisher and know what you were talking about. there are individual stocks perfect for traders but the long term buy and hold if you wait this out what may not be the whole story nobody knows how that plays out. >> a massive drop in oil hurting many portfolios globally if could the patronage you gained? now we're looking at oil below $50 of apparel is now the time to jump in? we're getting them to look ahead.
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>> the trackers are getting killed much more than exxon so maybe it is the continental resources that is what we should look at as a takeover target. liz: jeff, do you agree? >> yes. i am in the of the lindy or the energy plays of the lmp i am not trading right now because you have to be shrewd but some of the lmp have deal that four or five times treasury. you don't have to pick the exact bottom but some of are more stable. i am nibbling at oil but i am not jumping in to pick a bottom. liz: they keep it
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halliburton. you say wind energy but you like it? >> the famous phrase "follow the money" it is absolutely a perfect example. i have said it many times before blackstone that did a capital partnership deal but if blackstone has confidence i do. it is the honest truth. and i say right now where is the time to plan. is $11 a share and it pays 11% per year that is the deal. liz: could a costly hedge fund be a waste of your time and money? forget about the high cost
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of education community college could be free. david: one of the greatest hockey players in the history of the game-winning six stalemate cups -- stanley cups from the dior grangers back in new york joining us onset. and breaking news out of france searching for a woman believed to be an accomplice so is a really over? next. but for people with copd, the world is filled with air. sometimes breathing air can be difficult. if you have copd, ask your doctor about once-daily anoro ellipta. it helps people with copd breathe better
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>> the hedge fund managers are so fancy. but investors are now reaping the rewards for of the industry underperformed the broader market began last year and we bring back our panel. tracy jeff and adjacent. you wrote a great piece about this again. this is something buffett has been railing against this are you paying somebody to lose your money? >> it is funny but he doesn't pick stocks though they knew talked out both sides of your mouth but it is important to realize the him -- environment is favorable so it is viable as a tool but they're not the only tool and a lot of managers get a bad rap there are smart people out there.
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liz: and they may have an amazing year but then they did very well it is bad on both. the way it has gone in in 2007 it would outperform it has not been that long since active management worked for people. so a big deal has been made because vanguard is everything in the media. i don't mean to discredit what they have done. liz: what about the fancy pants manager? >> fisa index climbed you are not guaranteeing anything and actually it has suffered for a very long
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time to manage the mutual-fund. see you are better off to let the market to its thank -- thing. but the 20% it could even if the entire game. >> as they rose 30% and he takes 20 percent so ultimately at the end of the day managers' deserve to and 20 and even from the big picture perspective is all about asset allocation. nobody invest 100 percent nobody puts 100 percent of the brokerage account into the s&p index fund. that may be boring but it is the real truth. liz: you spend a lot of it
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president obama looking to make college more accessible and affordable am proposing to for years for community college? and i hate this you only needed 2.5 to make it through. let's lower the bar a little bit more if i give you free money i want a across-the-board and we do not know how we pay for this we throw more money out we have no idea how to cover it is on the taxpayers' back. >> if you take the other side it has become prohibitively expensive even lesser names are 40 grand? if you look at the cost of 3100 per year. >> i have sympathy for this argument and full disclosure i am a socialist i think government should pay for it but the notion it is people who don't deserve it.
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the next generation of leaders who will be engineers deserve college but it is not for everybody and everybody gets the trophy mentality is self-defeating and i don't think it'll do what obama wanted to do. liz: we don't have time for you be went to princeton. you will to fight the. [laughter] thank you. david: just to new developments after the deadly attack today had ties to al qaeda. it is the yemeni branch? >> they are reporting it directed the attack on a magazine that killed one dozen people. one brother is suspected as a shooter traveled to yemen and had direct contact with the al qaeda training camp. the government took hostages
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today ending with police killing three of the assailants and four hostages died. it was a deadly conclusion through comments of president obama to highlight a new education initiative. >> we're hopeful the immediate threat is now resolved thanks to the french personnel on the ground with the french government continues to face the threat of terrorism and has to remain vigilant. >> and the remarks minutes before the french president called for tolerance in the wake of the terrorist attacks that is a tragedy for his nation. french authorities are searching for another suspect one that is a female accomplice. back to you. david: rich and 7715 time nhl hall of famer teeeighteen here to tell us about the hockey game
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harvard for says yale. david: the green bay packers in dallas cowboys will battle it out except the field is covered in ice and snow. we will take you to limbo field to see if it will be ready by game time. many people clean their dentures with toothpaste or plain water. and even though their dentures look clean, in reality they're not. if a denture were to be put under a microscope, we can see all the bacteria that still exists on the denture,
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>> wayne gretzky and then mark messier one of the greatest in history with six stanley cups in his career he is known as the messiah because he ended the 54 year streak when the cup did not come here. liz: he is back at madison square garden for the rivalry cup between yale and harvard it goes back to the 1900. mark messier is here in the studio. >> i have to correct you. we brought back. the last time we won the cup was 1988 then he went to los angeles. >> then we spent a couple years in the late nineties say and that was a lot of
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fun. liz: harvard purses yale. talk about the hockey revelry of long that famous arena estimate they played in corrupt -- columbus circle everybody wore tuxedos last year as menaces where garden so what we are seeing is a resurgence of college hockeythe big video thao prevalent here but the market itself is incredible and 30 percent of college kids are playing in the nhl if you are good enough to play the scouts will find you. and college hockey is such a great tool for development because of not everybody is ready at the age of 80 with junior hockey's a menu have for years of development to come out as good citizens and a good role model. david: i was there last year
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with a friend of mine who plays in his spare time. she is not a hockey fan but through the college experience that she became a huge fan. so how much of that experience will turn the college students into lifelong nhl fans? to make their expose to different things and sports or theater or the arts. to your point the great thing about colleges they attract people all over the of world. i have the nephew playing at harvard right now tomorrow night is a big thrill for us to see him play. liz: talk about the alumni in the york the hedge fund manager that played for harvard you have that going
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for you. by bringing money has gone easier there were always in l.a. but now teams in florida what does this rivalry do for the collective national hockey league overall? >> it becomes any event sued attracts more people in just the typical hockey fan. and that trophy should be a little more rugged. it is a hockey trophy. [laughter] '' over the last couple of years they become e events and that is where you get the opportunity to attract new fans. david: we have seen a surge of popularity because they
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are the most passionate and loyal but it is the smaller%. when will that group grow? >> it is through this and television exposure with the high definition and tv you can see the pocket is so clearly defined with los angeles being so dominant. [laughter] >> but that does a lot for the kids in the southern states to have role models to not only survive but thrive being and winning championships. david: was a pleasure. mark messier. liz: the rivalry on ice.
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harvard vs. yale. the nfl playoffs this week and hopefully the weather will hold up. on a matter how cold we will go live to lambeau field next. >> coming up at the top of the our president obama announces today and another a giveaway of your taxpayer dollars. this time it is free community college degrees. coming up in just a few minutes.
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every truck can climb a hill. every truck can haul a trailer. but not everyone can say they're the fastest-growing truck brand... in america. guts. glory. ram. so ally bank really has no hidden fethat's right. accounts? it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees,
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from the bank where no branches equals great rates. liz: the green bay packers and dallas cowboys will battle it out in frigid temperatures this weekend on fox in the second round of the nfl playoffs. david: who do you think the weather benefits? we have a live report from green bay where the packers are preparing for the big game that is being dubbed ice bowl. how cold is it? reporter: it doesn't benefit me, i can tell you that. it's cold enough for everything to freeze here. and they told us that the field is not frozen, but do not go out on the field. but no one is looking right now, so i want to go out on the field and actually walked out on the field. do you know what? it is not frozen. there are spot that are a little bit tight, but it's not frozen and that it's good.
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take a look at what happened earlier today. this was the snow shoveling -- it's incredible here. they bring people in from the community and give them $10 per hour to shovel out the stadium. estimating.. it will not be as cold as the last ice bowl. what happened here in 1967, the ice bowl came in at minus 14 degrees. wind chill is minus 57 degrees. there were heaters on the field, like there are now come and the legend is that vince lombardi shut them off causing them to malfunction so the field was frozen. i don't know if that was true or not, but they are working now and it's not going to be that cold. it was a score back in 1967 to i am with you, i'm rooting for the packers because i love this place. liz: that is good, very good. david: that's amazing oh, man. it would be nice if it was snowing a little bit. i would like to see some of that. liz: okay, quick, the fuzz is
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grabbing you off the field. [laughter] david: we will be monitoring monitoring the situation throughout paris this evening. a lot of people looking for what might happen this weekend. next comes "the willis report." gerri: hello, everyone, i am gerri willis and this is the willis to work, to show where consumers are our business. and another big government program. free college. >> free for everyone who is willing to work for it. gerri: the president says it's free, but guess who is willing to pay for it. we are breaking down this proposal. in a violent day in paris. french police and terrorists clashed in a bloody battle. hostages are killed in the prime suspect in the terror attack are now dead found dead are said kouachi and cherif kouachi. gerri: gas prices less than $2 per gall

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